Question regarding a Joint mortgages and ending it

sathe

getmore4less wrote: »

What was in the exit agreement when you bought?.

When it comes to selling there is little they can do if no one wants to buy.

Well he has to stick around until its sold.

So yeah I am going to look at the New Buy scheme - with a smaller house (2 bed instead of three). The mortgage broker said doing it that way I should get a mortgage easier because its a smaller value (Which makes sense).

Thrugelmir

50% of the equity or thereabouts.

Would seem fair.

sathe

Thrugelmir wrote: »

50% of the equity or thereabouts.

Would seem fair.

And equity is the value of the home minus mortgage and others things?

Thanks.

Thrugelmir

In principle yes. What do regard as other things?

sathe

Thrugelmir wrote: »

In principle yes. What do regard as other things?

Like furniture and other bits brought over time.

kingstreet

If the value is £210k and you have a mortgage of £186k, you have £24k equity, his share being £12k.

If you don't have that £12k, you aren't going to be able to increase the mortgage to borrow it. It's almost already at the level most lenders would lend at today, 90%.

If your income is enough, you may be able to transfer the mortgage to you and remove him from the mortgage and deeds by transfer of equity. This costs between £400 and £600, but as mentioned, buying him out with further borrowing is not going to be possible.

sathe

Thanks but I have the mortgage and buy out sorted, just wanted to make sure i was working it out right, which I was.

Thanks.